Reserve and Chainlink Partner to Strengthen the Future of Decentralized Stablecoins
- Chainlink has been considered to be an industry leader when it comes to providing reliable data feeds that can be used for smart contracts.
- Reserve will be utilizing Chainlink to help make the protocol that they rely on be more secure for users and also be able to accelerate the development timeline.
A Secure and Reliable Network is Needed for Success
Having a robust and dependable Oracle network is very important for any stablecoin design. These are smart contracts that have been incorporated with the stablecoin protocols, which become only as effective as the price data, that is used to regulate their behavior. Therefore, it is crucial for a company to get this step of implementation right as it aids in the success of the coin.
A reserve protocol requires to have reliable price data to ensure it can maintain the 1:1 peg against the US dollar, this is achieved by monitoring the reserve stablecoin constantly against the dollar. But this is not all as it will require adequate management of the portfolio of the current collateral tokens that have been used to back the Reserve Token.
“Natural” Industry Partners
The Co-founder and the CEO of the Reserve, Nevin Freeman, notes that he sees both the Reserve and Chainlink as being natural partners in the industry. As they are both able to build critical pieces that are needed for the decentralized infrastructure, making both part of the great movement.
Thus, without proper on chain price feed being offered, most dApps will not be able to work without them. He goes on to state the following.
“We’re very excited about stablecoins and their potential to make crypto a medium of exchange. Projects like Reserve are taking seriously the task of making crypto practical for daily transactions in the parts of the world that need it most.”
Since the launch of Chainlink, the Reserve team has been following very carefully, and from this, they considered the company to be the best option in using them as a reliable oracle solution.
Chainlink Considered A Community Leader
Chainlink has been established as a decentralized oracle network, that allows the smart contracts to access the off chain data feeds securely, traditional bank payments together with the web APIs.
A platform that is being selected as the top blockchain technologies by the leading firms within the community; the likes of Gartner.